Invoice & Quotation Calculator
An invoice total with tax added and withholding deducted. Withholding is computed on the pre-tax value rather than the invoice total, which is the detail that makes reconciliations disagree.
Also called: invoice total calculator, tds on invoice.
$108,000.00 payable: $100,000.00 taxable plus $18,000.00 of tax, less $10,000.00 withheld at source. Your invoice total is $118,000.00.
Computed from the published rates for the tax year you selected, which is not necessarily the current year. A calculation, not tax advice, and it does not know anything about your circumstances beyond the figures entered.
How this is calculated
Discount comes off the subtotal, tax is added to what remains, and withholding is deducted by the client before payment. The order matters: withholding is calculated on the taxable value before tax, not on the invoice total, so a client who deducts on the gross has over-withheld. Whether tax applies to shipping depends on the jurisdiction and the nature of the supply, which is why it is a switch.
payable = taxable value plus tax, less withholding computed on the pre-tax value- S
- Subtotal (currency)
- D
- Discount (currency)
- t
- Tax rate (decimal)
- w
- Withholding rate (decimal)
Method and limits
What it assumes
- A single tax rate across the whole invoice.
What it deliberately does not model
- Mixed rates across line items need each line calculated separately.
- Reverse charge, where the client accounts for the tax, is not modelled.
Formula version 1.0.0 · definition 1.0.0 · United States · Report a problem with this calculator
Frequently asked questions
- Is withholding calculated on the total or before tax?
- Before tax, on the taxable value. A client deducting on the tax-inclusive total has withheld too much, and the difference comes back only on your return.